The hottest supply is limited, and the demand incr

Supply is limited, demand increases, and the price of molybdenum concentrate is bullish in the future

Abstract: the consumption of molybdenum in the catalyst industry in the overseas market is 10 times that in the domestic market, or more than 10 times that in the specific experimental force. It is understood that the consumption of molybdenum chemical products in the catalyst industry in the overseas market accounts for more than 60% of the total chemical consumption, while only about 20% in the domestic market

on September 21, at the 2017 tungsten molybdenum rhenium industry annual meeting, Liu Zhiyong, Secretary General of Luoyang tungsten molybdenum processing industry association and general manager of molybdenum capital trade, said that the current price of molybdenum concentrate was yuan/ton, which was undervalued. Industry insiders said that under the continuous promotion of supply side structural reform and strengthened environmental protection supervision, the molybdenum mine production capacity is difficult to increase significantly. With the gradual expansion of downstream demand, the molybdenum concentrate price is bullish in the future

the price is at a low level

molybdenum capital trade data show that as of September 21, the price of 45% - 50% molybdenum concentrate was reported at 1430 yuan/ton degree, up 57% year-on-year and 35% since this year

it is understood that the price of molybdenum concentrate exceeded 6000 yuan/ton degree in 2005, and fell precipitously after the financial crisis in 2008. The lowest price was 670 yuan/ton degree in November 2015

"in August, the total procurement of ferromolybdenum by mainstream steel mills was close to 9000 tons, which continued to maintain a high level. In some months this year, it even reached the peak of 12000-13000 tons. In August, the domestic molybdenum consumption was about 53300 tons, an increase of 15.3% year-on-year." Liu Zhiyong revealed

in 2017, the domestic molybdenum concentrate output was 58200 tons. It is understood that since 2008, the domestic molybdenum concentrate output has remained stable. In 2014, the molybdenum concentrate output was 87300 tons, the highest since 2008

"a national unified negative list system for market access will be implemented from 2018. Among them, item 56 of the prohibition category stipulates that new non-ferrous metal projects, including molybdenum mining and smelting projects, are prohibited. Therefore, even if the price of molybdenum products rises, the production capacity of molybdenum mines is difficult to increase significantly." Liu Zhiyong said

insiders said that under the condition of no increase in supply, the price of molybdenum concentrate is expected to continue to rise with the increase of downstream demand

expansion of application fields

in addition to molybdenum metal products, the hydrogenation catalyst industry is a major consumption direction of molybdenum chemical products

"hydrogenation catalyst can be used in petroleum refining process to improve oil quality through catalytic reaction. In coal chemical production process, desulfurization and pollution reduction can be achieved." Li Yongjun, domestic trade manager of molybdenum chemical industry of Jinmo Co., Ltd., said

the consumption of molybdenum in the catalyst industry in the overseas market is more than 10 times that in the domestic market. It is understood that the consumption of molybdenum chemical products by the catalyst industry in the overseas market on May 10 reached more than 60% of the total chemical consumption, while only about 20% in the domestic market

last year, the Fire Department of the Ministry of public security canceled the notice on further clarifying the relevant requirements for fire supervision and management of external thermal insulation materials for civil buildings (gxiao [2011] No. 65) "due to different varieties, the proportion of molybdenum added is different, with a minimum of 5% and a maximum of 20% - 30%. Molybdenum containing catalysts account for about 55% - 60% of hydrogenation catalysts." Li Yongjun said, "from 2018, the national five standard vehicle gasoline will be supplied nationwide, the Beijing six emission standards will be implemented simultaneously, and the environmental protection requirements will be continuously strengthened, so the hydrogenation technology will be more widely used in refineries in the future."

industry insiders said that with the rapid development of clean oil technology, the expanded or newly-built oil refining hydrogenation units will be put into operation successively, the hydrogenation capacity will increase significantly, and the demand for hydrogenation catalysts will increase sharply. In the next few years, it is expected that the market demand for domestic refining hydrogenation catalyst will exceed 40000 tons/year